Retailers prioritise Millenials at expense of over 55s

For many retailers, winning over the Millennial shopper has been a priority in sustaining their business in a difficult economic climate. After all, this is the demographic which will soon be the largest spending group. But what appeals to the 'me' generation is far from what other demographics expect from retailers and brands, and the affluent over 55s, for example, are seeing a disconnect with retailers that once wooed them for business.

New research from retail loyalty agency ICLP found that 82 percent of over 55s say that even their favourite retailer doesn’t understand their needs, while 2 in 3 say that they do not feel valued by their favourite retailer. ICLP further reveals that UK retailers are losing touch with the over 55s, or Baby Boomers, in their ongoing pursuit of millennial shoppers.

Baby Boomers not valued by retailers

ICLP surveyed more than 1,000 UK consumers and found that while many retailers go after the Snapchat generation, older shoppers are being left feeling cold.Just 29 percent said that they felt appreciated as a regular customer, compared to 48 percent of Millennials.

As part of the research, ICLP also asked shoppers what would make them feel more loyal to their favourite brands and what would make them spend more. The results demonstrated that 73 percent said that they would buy more if they were rewarded better by their favourite retailer. 60 percent would buy more if brands communicated with them better, demonstrating the value of retailer communications when it comes to building devoted and profitable relationships with consumers

Jason De Winne, General Manager at ICLP, commented: “At a challenging time for the high street, many retailers are doubling down on their efforts to lure millennial shoppers into their stores and onto their homepages. This sometimes comes at the expense of Baby Boomers, who tend to be more affluent, but require the same high level of attention that Millennials do to keep them loyal and devoted. It is this demographic which continues to support their local high streets, but are also increasingly tech savvy and spending online – and yet many brands are ignoring them."

“Retailers should aim to build more emotional connections with customers in all desired segments by making communications, rewards, and other touchpoints as relevant as possible. This must be powered by insight, so that the loyalty strategy can be informed by understanding each segment’s needs. The closer a customer feels to the brand, the greater the likelihood of them shopping again and becoming brand evangelists.”

Photo credit: Baby Boomers, Wikipedia, Baby Boomers Sparks Retail App